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Bitcoin Fear & Greed Index Reaches Lowest Level In Three Months, Is The Bleed Over?

Amid the current market turmoil, the Bitcoin Fear & Greed Index has continued on a sharp decline. This decline has seen the index fall to its lowest level in over three months as crypto investors become more fearful and hold their investments from the market.

Bitcoin Fear & Greed Index Takes A Nosedive

In the months leading up to the end of the year 2023, the Bitcoin Fear & Greed Index climbed steadily until it reached high greed levels. Now, this index takes a number of factors into consideration to place investor sentiment across a number of categories ranging from Extreme Fear, Fear, Neutral, Greed, and Extreme Greed.

The Fear & Greed Index represents investor sentiment using scores between 1 and 100, with the lower end of the score representing fear levels and the higher ends representing greed. A score between 1 and 25 puts investor sentiment in Extreme Fear, 26-46 is Fear, 47-52 is Neutral, 53-75 is Greed, and 76-100 is Extreme Greed.

In 2023, the score climbed as high as 74 as Bitcoin rallied toward $50,000. However, as the market has retraced, so has investor sentiment, which is currently trending toward fear. At the time of writing, the Bitcoin Fear & Greed Index is showing a score of 58, which puts it in Neutral territory. It is also two scores down from the previous day’s figures of 50 which means that investor sentiment is trending more toward fear than greed.

Bitcoin Fear & Greed Index

The current figure is the lowest that the index has been since October 2023. The last time the Bitcoin Fear & Greed Index fell below 48 was on October 17 2023. In cases like these, it shows that investors are less inclined to put money into the market. This causes demand to fall, and as a result, prices of assets across the space suffer for it.

Bitcoin price chart from Tradingview.com (Fear & Greed Index)

When Will The Bleed Stop?

So far, the decline in the Bitcoin price has been triggered by massive outflows from the Grayscale Bitcoin Trust (GBTC) as investors redeemed their shares. Over $2 billion in BTC has flowed out from the fund, and this has put a lot of selling pressure on the asset.

However, as the week progresses, the outflows are expected to slow down as investors stop selling. In such a case, the demand would be all to catch up with the supply being dumped on the market, thereby giving Bitcoin and other assets a chance to recover.

At the time of writing, the Bitcoin price is still trending around $40,000 after a bounce back from a dip to $38,500. The price is up 2.6% in the last week, according to data from Coinmarketcap.

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Investor Sentiment Sees Sharp Positive Spike Following Crypto market Recovery

The crypto market has been able to recover above $1 trillion once more after the market rally that was triggered by the Ethereum Merge. This has resulted in more positive market sentiment from investors, causing the Fear & Greed Index to move clear of the extreme fear territory. Such spikes in sentiment can often spell positive news for the digital assets in the space.

Index Moves Into Fear

Now, even with the positive movement in sentiment, the crypto Fear & Greed Index continues to remain in the fear territory. However, it is a welcome development from last week’s close of 22. With a current score of 34, the index has risen near one-month highs, showing a significant difference in how investors viewed the market last week compared to this week.

Nevertheless, the market sentiment is still down from where it was last month. The month of August was a rather good one for the market, where bitcoin had reached as high as $25,000, and Ethereum had clocked out at $2,000. In the end, the Fear & Greed Index had moved into a neutral 47, the highest it had been in four months. 

However, recent developments on Tuesday morning are likely to send market sentiment back into the extreme fear territory. Following the release of the CPI data, which came in at just 0.1%, the crypto market reacted poorly.

Market cap drops below $1 trillion | Source: Crypto Total Market Cap chart from TradingView.com

Bitcoin’s price had dropped sharply from the mid-$22,000s to below $22,000, losing more than $1,000 in a matter of minutes. The crypto market cap lost more than $40 billion dollars in this time, although it continues to hold above $1 trillion still.

Will Crypto Market Recover?

The crypto market is currently suffering from the aftermath of a combination of sharp increases and some negative news. A correction was already expected from the market, but the CPI data had pushed it farther down than expected.

However, bitcoin continues to show support just above $20,000. So if this level holds, it is likely that there will be a sharp bounce leading to another market recovery. This is largely dependent on the digital asset’s ability to continue to hold the $20,000-$20,800. A failure to hold will likely see bitcoin’s price back down below $20,000. If it holds, though, then a climb above $22,000 is likely.

Bitcoin is currently trading at $20,900 at the time of this writing, down 6.08% in the last 24 hours.

Featured image from Bitcoinist, chart from TradingView.com

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Crypto Market Remains Extremely Fearful As Bitcoin Struggles At $20,000

The crypto market has found itself at odds since the price of bitcoin had fallen to $20,000. This remains an important technical level for the digital asset because it is right above its previous cycle peak. As such, investors across the space watch with bated breaths to see if bitcoin will be able to hold this level. This has, in turn, led to a decline in investor sentiment during this time, causing the Fear & Greed Index to plunge low.

Crypto Index Sits At 25 

The Crypto Fear & Greed Index is an indicator that draws from a number of metrics to give an aggregate score to represent how investors are feeling toward the market. It ranks these across four categories, and presently, investor sentiment falls in the lowest of these.

In its most recent update, the Fear & Greed index places the market in the extreme fear territory with a score of 25. This is after the index had hit its lowest of 20 in more than a month, signifying some rise in positive sentiment in the last day.

However, the present score is not so good for the crypto market. With a sentiment like this, investors are wary of putting any money into the market, causing panic and leaving the playing ground to the sellers. This works to push the prices of digital assets in the space even further down.

Bitcoin Struggles With $20,000

The $20,000 mark has been one of the hardest levels to maintain for bitcoin. Volatility always seems to shoot up whenever bitcoin is at this point, leading to erratic movements in price. This way, the digital asset continues to move above and below $20,000.

Nevertheless, bulls continue to put up a fight at this level because there is no significant support below this level except at $17,600. This cycle’s low, which had plummeted below the previous cycle peak, puts bitcoin in a perilous position.

Historical data puts bitcoin at least 80% down from its all-time high for the bottom of the bear market to be in. If the market follows this trend, then $17,600 may not be the bottom for the market. Bitcoin is only about 70% down from its all-time high as it currently stands. An 80% drawdown would put it around $15,000.

However, it is important to keep in mind that bitcoin has broken different historical trends during this cycle. An example is that its price has never fallen below its previous cycle peak, so an extension to this deviation could see bitcoin shake off the expected 80% drawdown.

Featured image from CNBC, chart from TradingView.com

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Crypto Market Shaves Off $50 Billion In One Day As Reversal Begins

The crypto market has now seen more than $50 billion lost in a one-day period as the market lost its recovery streak. This had been expected for the market due to the large recoveries recorded in a short period of time. This has brought down the crypto total market to an important level.

Crypto Market Drops Below $1 Trillion

Bitcoin and Ethereum’s remarkable recoveries last week had done enough to push the whole of the market upward. As a result, the crypt market quickly added more than $100 billion during this time. It had pushed the total market cap above $1 trillion once more, too much jubilation among crypto investors.

Related Reading | Ethereum Weekly Exchange Net Flow Points To Growing Accumulation Trend

However, this recovery would prove to only be short-lived given that the crashes had been as swift. In the span of one day, the crypto market had lost more than $50 billion following the dips and has now lost its hold on the $1 trillion market cap.

Presently, the total crypto market cap is sitting at $944 billion, more than a $100 billion loss from where it was sitting last week. The loss pattern over the last few days is now seeing cryptocurrencies in the space testing an important support level and mostly failing to hold.

Bitcoin has since lost its footing at $22,000 and is now trading at low $21,000s, while Ethereum has declined to the $1,400 territory. This has dragged down their market caps to $402 billion and $171 billion, respectively.

Market Sentiment Takes A Dive

As the crypto market had recovered, the market sentiment quickly climbed. For the first time in two months, investor sentiment had successfully made it out of the extreme fear territory to be sitting in fear. With the continuation of the recovery, the sentiment score had increased to close at a new two-month high of 30 last week.

Related Reading | More Than 57,000 Traders Liquidated As Bitcoin Declines Below $22,000

The sentiment had consistently been up for the last couple of days until Monday, when the prices had begun to fall. The dip in sentiment saw the Fear & Greed Index return a score of 26 for the last day, signifying that investors are once again becoming wary of the market.

While the bearish trend is not completely established yet, it is gradually becoming the norm over this time. Following historical trends, there will be recoveries and pullbacks, which will see the market establish lower highs and lower lows.

Featured image from CNBC, chart from TradingView.com

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The Worst May Be Over As Crypto Market Adds More Than $100 Billion

The crypto market had suffered a long stretch of downtrend following the mid-June market crash. This had brought the total market cap down to yearly lows as large and small cryptocurrencies alike suffered. However, there is starting to be a turn in the tide with the new week. The crypto market cap, which had been trending below $900 for the better part of the week, had put on $100 billion.

Crypto Sentiment Begins To Turn

The crypto market cap still remains below $1 trillion but it has recovered to a good point. With the price of bitcoin above $22,000, it has gotten close to reclaiming this crucial position. Another thing that has pushed the crypto market cap has been the recovery of Ethereum, whose recent bullish tendencies have rubbed off on other smart contract platforms in the space.

Related Reading | Bitcoin Marks One Month Of Negative Funding Rates, More Decline Incoming?

With this, the sentiment of crypto investors has begun to shift. One of the ways in which this has happened has been in the reading of the crypto Fear & Greed Index. This index uses data from five different metrics to present a figure that represents how investors are feeling toward the market.

Crypto market cap recovers close to $1 trillion | Source: Crypto Total Market Cap on TradingView.com

For the better part of June, the index had been in the ‘Extreme Fear’ territory. This was as the bear trend raged on, and investors had taken a step back from the market due to the losses. This saw the market close out the month with one of the lowest scores in the interest of the index with a 6.

However, as some cryptocurrencies in the market have recovered, so has the market sentiment. The Fear & Greed Index presently sits at a score of 20 at the time of this writing. So although it still remains in the extreme fear territory, it is up 14 points from last month’s close.

Related Reading | Mid Cap Crypto Coins Lead In July, Best Way To Weather The Winter?

There is no doubt that bitcoin’s recovery above $22,000 has a lot to do with this. The pioneer cryptocurrency is a market mover, and if it continues to grow, it is expected that market sentiment will recover more.

One thing to note, though, is that such large recoveries in such a short time can lead to sell-offs. Mainly, investors often see such moves as a ‘bull trap’; hence they try to get out of the market before the inevitable retracement. Over the last 24 hours, there have been more BTC going into centralized exchanges with a positive net flow of 725.2 million. This supports the fact that investors are taking this time to sell their holdings.

Featured image from Kapersky, chart from TradingView.com

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Market Wallows In Extreme Fear As Bitcoin Struggles To Hold $20,000

Bitcoin has been struggling in recent times and even with the recovery, continues to find it hard to hold above the $20,000 level. With the crash has also come a significant decline in investor sentiment which has reached some of its lowest points in recent years. And even with bitcoin finally making the coveted recovery above $20,000, it seems investor sentiment is finding it hard to keep up as it remains firmly in the negative.

Market In Extreme Fear

According to the Crypto Fear & Greed Index, a tool that measures how investors are feeling towards the market, investors are still very wary of the market. The index is currently at a score of 11 which means that the market is still in the extreme fear territory. 

Related Reading | By The Numbers: The Worst Bitcoin Bear Markets Ever

This comes as no surprise given where the price of the leading digital assets in the space has been. Even profitability has plummeted in this time period, leaving a lot of investors holding bags of losses in the market. Additionally, multiple events have also played integral roles in getting investor sentiment to this point.

Investor sentiment in extreme fear | Source: alternative.me

The first had been the LUNA crash that had wiped billions of dollars off the market. Then leading lending protocol had frozen withdrawals and transfers, essentially blocking off thousands of investors from being able to access their funds.

With crypto being locked on multiple platforms, investors are wary of putting any money in the market for fear of losing it or having it locked on a platform. Hence, inflows into the space have slowed significantly in wait for better sentiment.

Where Is Bitcoin Headed?

Bitcoin had fallen as low as $17,600 in its last week’s downtrend. This was below the previous cycle peak, triggering fear among investors that there may be no support. However, the digital asset had found support and had since recovered back above $20,000 where it is now resting.

Nevertheless, the digital asset continues to struggle. Holding above this level has been a herculean task, especially with the significant resistance being mounted by bears at the $21,000 point. Moreover, some in the space expect the price of the digital asset to keep declining from this month.

BTC recovers above $20,000 | Source: BTCUSD on TradingView.com

Going along with the halving trend that bitcoin has followed since its inception, it may be at least another year before the digital asset makes a recovery towards its previous all-time high. Looking at historical data shows that the next bull market may likely start in May 2024, when the next halving occurs.

Related Reading | Bitcoin Perpetual Open Interest Suggests Short Squeeze Led To Crash

Bitcoin is now trading above its 5-day moving average for the first time since the crash. However, this does not essentially mean a bull trend is underway. Rather, it shows that a certain level of stability is beginning to return to the market. 

Featured image from Guardian.ng, chart from TradingView.com

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Negative Sentiment Deepens In Crypto, Why Recovery May Not Last

Negative sentiment in the crypto market has been ramping up in the last few months. This comes hot on the heels of a market crash that saw top coins such as Bitcoin and Ethereum drop to one-year lows. It has resulted in some of the lowest scale readings that the Fear & Greed Index has put out in recent times and it looks like this is only just beginning as negative sentiment has now touched yearly lows.

Crypto Market In Extreme Fear

Just like with any declining market, investor sentiment has turned to the worse. Indicators show that the market is now in extreme fear, meaning that investors are wary of playing in the space. This has been the case for a while but the recent readings provided by the Crypto Fear & Greed Index show that it is worse than expected.

The index currently displays a score of 10 which is one of the lowest levels that it has been in the last six months. The last time the index was this low was in January when the market was still reeling from the December 4th crash. What followed was a prolonged period of downtrends, similar to what is being experienced in the market for the last few weeks.

Related Reading | Perp Traders Remain Quiet As Bitcoin Struggles To Hold $30,000

This negative sentiment continues to wax stronger even through recoveries. Currently, the price of bitcoin is back above $30,000 and Ethereum continues to push for $2,000 but that has not triggered any change in investor sentiment. Indicating that sentiment is not following the market movement as strongly as it used to and is rather hanging on to where investors believe the market is headed.

Total crypto market trending $1.25 trillion | Source: Crypto Total Market Cap on TradingView.com
Recovery Not Strong Enough?

The recovery that is being recorded in the early hours of Monday is a welcome one. However, it is debatable if this recovery will last. This is because the bears have since had a stronger hold on the market compared to the bulls, making the market prone to a sudden pull-down.

Looking at indicators for Bitcoin, which is a market mover, it continues to trade below the 50-day moving average despite the recovery. It remains a seller’s market with indicators like this especially given where the next support level lies for the digital asset.

Related Reading | Ethereum Profitability Dumps To 2-Year Low As Price Corrects Below $2,000

For BTC, adequate support is present only at the $28,108 level. This means that any decline now will see the digital asset crash through its Sunday gains and fall back to pre-weekend levels. It also doesn’t help that indicators are pointing to sell on all angles. 

To maintain the current recovery trend, there will need to be a large influx of funds into the market. Even at oversold levels, various cryptocurrencies remain prone to further declines, unless buyers can ramp up their activity enough to stall a downtrend.

Featured image from Phemex, chart from TradingView.com

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Market Sentiment Dangerously Negative As Crypto Fear Index Drops To Two-Year Low

Crypto market sentiment has dropped into the far negative once more. This has been one in the making ever since the Terra crash had begun and investors had scrambled to leave the market. A culmination of this and speculations that the market is headed into one of the longest bear trends ever recorded has now seen sentiment fall to levels not recorded since 2020.

In The Extreme Fear Region

Now, the crypto market sentiment has not been positive for a while. Most of the last two months have been spent in the fear territory and April had closed out in extreme fear. Nevertheless, the scores on the Fear & Greed Index had remained somewhat high until the LUNA crash. This has sent the market into extreme fear overdrive as the Fear & Greed Index now displays a score of 12, the lowest it has been in two years.

Related Reading | Bitcoin, Ethereum Exchange Inflows Suggest Sell-Offs Are Far From Over

More notable is the fact that the index had touched as low as 8 last week. This makes it the second-lowest score that has ever been recorded on the index, the lowest being a score of 5 in 2018. What had followed from its May 17th lows was a bit of a recovery but even that had not held up well. As of the time of writing, the index has lost another point and is now sitting at 11. 

Market sentiment falls to extreme greed | Source: Arcane Research

This extreme fear reading mirrors how investors are feeling when it comes to investing in cryptocurrencies at the moment. Simply put, investors do not want to put money into the market and this is evidenced by the exchange inflows that have been rocking the space. These exchange-wide sell-offs only contribute to the already declining sentiment, sending digital assets further down.

Is It Time To Buy Crypto?

Historically, when the crypto market sentiment has declined this much, it can be seen as an opportunity to get into the market right before recovery. This has worked out many a time for investors. But there have also been times when it hasn’t returned exactly what was expected. Namely, the downtrend had continued even when market sentiment was in the extreme fear territory.

Total market cap recovers to $1.25 trillion | Source: Crypto Total Market Cap on TradingView.com

Nevertheless, this is still regarded as one of the easiest buy indicators of all time. It is incredibly popular due to the fact that traders and investors will often try to use market sentiment to gauge when the bottom of the market is in and get in at the right moment.

Related Reading | Institutional Investors Seek Safe Haven In Crypto Products Amid Market Uncertainty

These are mainly used for the leading cryptocurrencies in the market such as Bitcoin and Ethereum since they are easier to track. But like with anything in a highly volatile market such as the crypto market, there is no such thing as an exact science. So while ‘buying the blood’ can yield good results, they can easily go bad. 

Featured image from The New York Times, charts from Arcane Research and TradingView.com

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Crypto Market Goes Into “Extreme Fear”, What’s Next?

With the recent crypto market decline, investors have become more fearful of the market. Recorded on the Fear & Greed Index, it shows that this remains an incredibly frightening time for users of cryptocurrencies. In times like these when the prices of digital assets continue to slide down, it is expected that investors become warier. However, this time around, the market had quickly gone into “Extreme Fear” territory with no sign of emerging anytime soon.

Scared Of Investing?

At the start of the month, top cryptocurrencies such as Bitcoin and Ethereum had begun a recovery trend that would eventually wash over the rest of the market. As prices rose, so did positive sentiment among investors who had flooded back into the market. Not long after though, the market had started one of its signature correction trends that comes with the bull rally and now investors have chosen to retreat instead of risk further downside.

Related Reading | CeFi Platform Celsius Restricts Yield Rewards To Only Accredited Investors In U.S.

The Fear & Greed Index shows that the market had been on a downward sliding scale since coming out of last week which had ended with a neutral sentiment from both sides of the market. By Monday however, this had quickly turned into fear with bitcoin finally falling to the $43K territory. Tuesday in itself proved to be worse as the market had indeed fallen into extreme fear, leading to a low score of 20.

Now, while Wednesday is starting out better than what Tuesday ended with at a score of 25, it still does not spell good news for the short term. When investors are scared of the market, they tend to not put any money into it for fear of losing more. This also triggers people taking profits from the market due to fear of their coins dropping further in value. With such low momentum, prices can suffer more instead of staging another recovery.

Is Fear Good For Crypto?

When it comes to how the market is feeling towards cryptocurrencies, it can often be a matter of personal perspective. There are those who believe that steering clear of the market while it is fearful is the best bet and to only invest once the prices start recovering. However, there are those who believe the opposite.

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Those who subscribe to the “buy the blood” school of thought often welcome downtrends like these since it gives them the opportunity to purchase coins at a “discount.” This mainly comes down to the risk appetite of the investor.

Nevertheless, it still stands to reason that some of the largest rallies have come after the market has consolidated from a price drop. This was the case in late February/early March which had seen the market in extreme fear turn greedy very fast as prices began to recover. 

Total market cap falls to $1.8 trillion | Source: Crypto Total Market Cap on TradingView.com
Featured image from Psychology Today, chart from TradingView.com

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Crypto Market Comes To A Standstill As Sentiment Rolls Into Neutral

The Crypto market has been fluctuating heavily in the past couple of weeks but with last week’s rally had finally landed into the greed territory. However, as the rally had slowed down and the inevitable market correction had begun, sentiment had begun to shift once again into the negative. This had caused the Fear & Greed Index to reverse out of the greed territory, finally ending in neutral. Now, the market remains at a standstill waiting for the next move.

Crypto Fear & Greed Index In Neutral

The crypto Fear & Greed Index helps map out how investors are feeling towards the market. Currently, it is neither good nor bad which has seen the index languishing in neutral territory. It is important to note that sentiment had driven far into greed as bitcoin had made its way to $47,000 but now, most of that positive sentiment seems to have washed away after bitcoin had made a slight decline that brought it back into the $46,000 region.

Related Reading | Dogecoin Soared After Elon Musk Bought 9.2% Of Twitter, What’s Next?

With bitcoin’s decline, the whole market had naturally taken a tumble along with it. This inevitably brought down the total market cap back into the low $2 trillion. Nevertheless, the market has begun to recover once more, which would explain why the index did not completely slip into the fear region. 

Last week, the index had finished in greed, a stark contrast to the extreme fear in which the index had closed the previous month. The current location of the index at a neutral 52 suggests that investors are not making any important moves in the market. Mostly, the buys and sells have been balancing out each other and investors are not moving either way at present.

Related Reading | Bitcoin Exchange Outflows Suggest Rally May Only Be Starting

This is easily understandable given that the market had mostly slowed to a crawl in terms of momentum. Top cryptocurrencies like Bitcoin and Ethereum continue to trend in the same region, struggling to make it above the next significant resistance points. While the rest of the market waits to follow what the market leaders do.

However, since the majority of the market continues to trade in the green, the Fear & Greed is skewed towards greed despite being in the neutral territory. With what looks like another bounce-off point for the crypto market, the index may very well be back in greed before the week runs out.

Market cap at $2.098 trillion | Source: Crypto Total Market Cap on TradingView.com
Featured image from Stears Business, chart from TradingView.com

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Crypto Market Crumbles To Extreme Fear, Is It Time To Buy?

Crypto is still holding up to all of the onslaughts. It, like other financial markets, has been subject to a lot of stress following the political tensions that continue to rage on. However, investors have found solace in the digital assets that have continued to hold up. Although returns have not been great, there has not been too high a slip in prices. But it hasn’t helped market sentiment much.

The crypto market is propelled a lot by investor sentiment. Depending on where sentiment skews, it can be an indicator of where the market is headed. Currently, market sentiment is very much in the negative territory as evidenced by the Fear & Greed Index.

Market Falls To Extreme Fear

The Fear & Greed Index is an index that measures market sentiment across a number of factors. Using this, it puts out a number on a scale that shows how investors are feeling about the market. This week has not been a good one for the crypto market in terms of sentiment as it has fallen deep into the fear territory. After spending the majority of last week in the neutral territory, the Fear & Greed Index has not pointed its finger at Extreme Fear.

Related Reading | Green Mining Company HIVE Secures Deal To Buy A Number Of Intel’s New ASICs

The fall into this territory comes as a result of declining prices. Coming out of the weekend, bitcoin which had managed to recover to the $40K-$44K level last week had begun to slip up. By the time the new week rolled around, the digital asset had once again fallen back below $40,000, taking the rest of the market with it. Sentiment quickly turned negative, putting the index in the extreme fear territory.

Market goes into extreme fear | Source: Alternative.me

It seems the month of March will follow in the footsteps of February which had closed out the month in Fear. Currently, the crypto market is at a score of 21 on the Fear & Greed Index. This may not be the lowest that the index has gotten in recent times, but it is still a low number nonetheless.

Time To Fill Up On Crypto?

Trying to time the market can often be a futile endeavor given how highly volatile cryptocurrencies can be. But that does not mean that investors cannot look to indicators to try to pinpoint the best time to enter the market. One of those indicators that investors often use to determine if they should enter the market is the Fear & Greed Index.

Related Reading | Crypto Markets Slightly Recover After Weekend Decline

There is a saying in the investing world, “buy when there is blood on the streets”. This suggests that investors should buy assets when the market is down. One indicator that can point to a good buying time is when others are fearful and wary of getting into the market. It is the belief that this is a time when people begin loading up their bags and as such, the value of assets will begin to go up.

Crypto total market cap below $1.7 trillion | Source: Crypto Total Market Cap on TradingView.com

However, this cannot always go as planned as sometimes even purchasing digital assets when the market is down does not guarantee that there is a reversal coming up. The crypto market is unpredictable with a mind of its own and sometimes when investors believe the prices cannot go further down, they do. So the best time to buy is subjective and based on the experience of each investor.

Featured image from TED, chart from TradingView.com

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Ethereum Sports Bearish Signals As Crypto Market Shifts Back Into Fear

Ethereum has mostly mirrored bitcoin’s run in the recent rally. This has seen the digital asset break as high as $3,000 once again for the year. This point which has proved elusive for the cryptocurrency has continued to give it a hard time. In previous times, Ethereum has had a had time staying above this level. Such has been the case this time around as it fails to secure its spot above e$3K.

Ethereum On The Decline

Like all other cryptocurrencies, Ethereum is a highly volatile asset and as such is subject to wild fluctuations in its price. For the last few months, it has fluctuated but remained mostly around the $2,600 to $ 2,800=0 level. With the recent rally, it was finally able to break out of this trend and begin a whole new one, one which saw it rise above the coveted $3K level.

Related Reading | TA: Ethereum Prints Bearish Pattern, Why It Could Correct To $2.8K

Nevertheless, this recovery would prove to be short-lived given that ETH could not maintain this position. Meeting fierce resistance from the bears at the $3,000 point, the digital asset was unable to form any meaningful support above it. This meant that the price crumbled below it but it would prove to be a continuous downward trend given the current indicators.

The fall below $3k saw the digital asset trading below its 50-day moving average. Now, this is an incredibly important point for cryptocurrencies in general given their high volatility. Since buyers are unwilling to purchase the digital asset at prices they did over the past few weeks, it indicates that Ethereum is still a seller’s market. Thus, it is expected that there will be a continuous downtrend as more coins are dumped on the market.

ETH falls below $3k | Source: ETHUSD on TradingView.com

This however does not spell bad news all around though. A market like ETH’s can quickly switch up and turn into a buyer’s market, especially when prices are as low as they are right now. If this happens, then Ethereum could very well see another 10% bounce that will cement its position above the $3k resistance point.

Market Sentiments Falls To Fear

The Fear & Greed Index had moved out of the fear territory back into a neutral point at the start of the week but this new wave of positive sentiment did not hold. The index has now moved back into fear at a current score of 39 as at the time of this writing, showing that despite recent rallies, investor sentiments are still more negative than anything.

Related Reading | Terra (LUNA) Outperforms Popular Cryptos Ether, Dogecoin In The Past 24 Hours

Ethereum and the crypto market are directly affected by investor sentiment as they show when investors are likely to put money in the market. Currently, with the index in fear, it shows that investors are very wary of putting money in the market. However, this does not necessarily spell bad news for ETH.

Market sentiments drop to fear | Source: Alternative.me

Usually, when most investors are fearful, it can present a good buying opportunity. In the past, whales have been known to take advantage of moments like these to fill their bags. If so, then ETH can kickstart another rally. But only a large absorption of current supply can start the digital asset on this path.

Featured image from CNBC, chart from TradingView.com

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The Year In Review: An Emotional Rollercoaster For Crypto Investors

The crypto market this year saw some ups and downs that had market sentiment fluctuating widely. Investors had experienced a year like no other given the multiple bulls runs and subsequent crashes and dips that then plagued the market. For some, it was the best year after their portfolios lay in the red for the past three years, while for others, especially those who got in at the height of the bull rallies, it has been a brutal year.

Nonetheless, it has been a year packed with lessons for all investors. Moving from incredibly bullish to bearish has helped educate investors that it cannot always be dark, neither can it always be bright. In this report, we take a look at the sentiment movements in the year and how emotions have moved with the market.

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Crypto Fear & Greed Index Fluctuates

Entering into the year had investor sentiment at one of its highest. Right in the extreme greed territory, the increasingly positive outlook of investors would play out over the next couple of months in the market. For four months, market sentiment was in extreme greed, and faith in cryptocurrencies remained high. However, this would change not too long after.

The very first notable price crash in the crypto market had happened in May, which saw market sentiment plummet with it. After staying in the greed territory for so long, the sentiment was suddenly in fear and investors were wary of the market. This continued through most of the summer as market-wide dips continued to rock the market, in turn dragging sentiment more into the negative.

By spring, however, the market had once again begun to rally. Sentiment, slowly but surely, moved out of the fear territory and went into neutral, hovering between this and greed.

Fear & Greed Index fluctuates widely in 2021 | Source: Arcane Research

August would market the beginning of another stretch of positive sentiment as the market once again dived into greed territory. This was followed by rallying prices, with investor favorites hitting new all-time highs.

This would prove to not last long as sentiment once again derailed back into the negative following the September 7th market crash. The Fear & Greed Index would again trend low until another rally towards the end of September brought it back up again. This time around, the market sentiment would spend a considerable amount of time in the greed territory before reversing again.

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Investors who are mostly seasoned have used tools like the Fear & Greed Index to profit off the crypto market this year. So while others have been scared of putting money in the market, these investors have doubled down on their investments and have seen it pay off. Arcane Research predicts that this trend will continue into 2022 and will help investors spot “buy the dip” opportunities in the coming year.

Presently, the Fear & Greed Index is trending low at around 40, indicating that investors are fearful of the market.

Crypto total market cap crumbles to $2.2 trillion | Source: Crypto Total Market Cap on TradingView.com
Featured image from Institute of Entrepreneurship Development, charts from Arcane Research and TradingView.com

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Crypto Market Drops Back Into ‘Extreme Fear’ As Prices Struggle

The crypto market has continued to struggle after running out of steam with its last rally. During the last lap of the year, the market as a whole is not doing too well, although prices of cryptocurrencies are way higher than they were this time last year. Nonetheless, there have been some interesting trends that have emerged with the market crash that has seen prices stagnate at this time.

The Fear & Greed Index has shown that market sentiment has gone into the extreme negative once again. With prices of top assets like bitcoin and ethereum trading below important support points, sentiment has fluctuated widely in the market but has mostly stayed in the negative. This time around, market sentiment has dropped low and landed in the ‘extreme fear’ territory.

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Crypto Market Basking In Fear

The crypto market has spent a good portion of the month of December in the fear territory. Market prices haven’t been the most favorable for the month and investors remain incredibly wary of getting into the market at such a time. Others have however seen this as a buying opportunity like in the case of MicroStrategy, which bought an additional 1,434 BTC bringing its total holdings to 122,480 BTC.

The aggregate for the month of November came out to neutral on the sentiment side of things after a tumultuous end to an otherwise wonderful beginning of the month. That has spilled into December as Christmas rolls around.

Market goes into extreme fear | Source: alternative.me

Yesterday the Fear & Greed Index had peaked at 29 on the chart, putting the market in the fear territory. This was up a bit from last week where the market spent long stretches in extreme fear. Today, market sentiment again rolled into the extreme fear territory with a low 23 on the chart.

The index being this low shows that there are low buying pressures in the market and high selling pressures. Sell-offs are still underway in various digital assets that have seen their prices dip into the red. As the market heads into the weekend which is usually characterized by low volatility, will the market be able to pull itself out of extreme greed?

Bitcoin, Ethereum Suffer Losses

Bitcoin had made a splash in the market when it had hit its new all-time high slightly above $69,000 at the beginning of November. This had sent the crypto market on what would be a memorable bull run as Ethereum came close to hitting the $5,000 mark not too long after. But this would only be short-lived as the downtrend had begun not too long after.

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For Bitcoin, the digital asset had lost as much as $10,000 in a single day that sent it towards the low $40,000s. Ethereum on the other hand had held out for a while but succumbed to the downtrend in time.

Bitcoin is now trading well below $50,000 after failing to hold above this price point this week. Ethereum is now trading below $4,000, a crucial support point for the digital asset. At the time of writing, bitcoin is trading at $47,141 and ethereum is trading at $3,826.

Crypto total market cap at $2.16 trillion | Source: Crypto Total Market Cap on TradingView.com
Featured image from Bitcoin News, chart from TradingView.com

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As Crypto Market Goes Into “Extreme Greed,” Is Bitcoin Set For New All-Time High?

Bitcoin price recently broke past $50,000 as the entire crypto market experienced a surge. Investor sentiment has been greatly skewed into the positive with this break of the $50K resistance point, increasing the buy pressures all around the market.

There are various tools used to measure how investors are currently feeling towards a particular asset. In this case, the Fear & Greed Index helps to measure the general sentiments around the top coins in the crypto market. The week has started on a high note with the Fear & Greed Index index at a score of 79 today. Putting sentiments around top coins like bitcoin in the region of extremely positive.

Fear & Greed Index goes into extreme greed | Source: Fear & Greed Index from alternative.me
Market Turns To Extreme Greed

The market has spent the last week in greed according to the Fear & Greed Index. Now, following bitcoin going to $52K, the pin has now moved straight into “Extreme Greed.” This is a result of investors, both old and new, clamoring to get their hands on as much bitcoin as possible. At this point in time, accumulation looks to be the name of the game.

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The Fear & Greed Index jumped six points in the span of 24 hours to land at 79 on the index, which put it directly in the “Extreme Greed” territory. Measuring emotions and sentiments in the market have shown that investors have gotten into the phase where they want to get their hands on the top cryptocurrencies in the market.

For Bitcoin, this means that the asset is nowhere near being done with its current rally. Testing above $52K earlier, the digital asset had been thrown back downwards as the price mounted a resistance at this point. But this dip would not last long as bitcoin promptly found its footing above $51K again. With investors buying back into cryptos, the price of bitcoin looks set to mount another rally from its current point.

BTC expected to hit $100,000 by year-end | Source: BTCUSD on TradingView.com

Market analysts have put the price of the digital asset at $100,000 by the end of the year. While this may seem ambitious, accumulation patterns continue to point towards this being the most likely endpoint for the asset. September has historically been one for the bears, so the dips at this point are understandable. With the market picking up momentum after each dip, a price surge towards $60K looks imminent.

Good News Around Bitcoin

Tomorrow will see the first country in the world to accept bitcoin as legal tender. The country of El Salvador had announced earlier in the year that it was accepting BTC as a legal tender alongside the dollar. The set date for this law to go into effect was put at September 7th, which has sparked a lot of interest in the digital asset.

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With the adoption less than 24 hours away, the market has responded quite positively to this news. Today, the price of bitcoin broke $52K for the first time since May, marking the continuation of the current bull market. And as El Salvadorans get ready to use BTC as a legal means of exchange, the world watches in anticipation of how the implementation will go.

Featured image from CryptoPotato, chart from TradingView.com

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Crypto Market Goes Into “Extreme Greed,” What This Means For Bitcoin

Bitcoin is still headed for the moon even as the weekend goes on. The price of the asset has not seen much in the way of a downturn following its massive price increase from last month. Overall sentiments in the crypto market are still very positive, as evidenced in the Fear & Greed Index. The index which had spent the better part of the last two months following the market all-time high has now turned into the most coveted territory.

The crypto Fear & Greed shows that the market has now gone into “extreme greed.” Continuing its upward trajectory from the last couple of weeks. The index had gradually made its way out of “extreme fear,” when the market seemed to be in its most vulnerable. Prices were crashing from both bitcoin to altcoins. This saw sentiments decline into negative.

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The first week of August brought a gush of fresh air when the market moved out of extreme fear into the fear territory. Although this was not ideal, it showed that cryptocurrencies were once again making progress. A week of continuous uptrend brought the price of the digital asset into neutral. Then what followed was a quick run-up into the “greed” territory. Bitcoin had broken $40K and there was no telling how long the run-up would go on. Investors did not want to miss out on this and so money poured back into the market.

Last week saw the price of bitcoin breaking $48K for the first time in over two months after it hit its $64K all-time high. This continued growth pushed the market sentiment right into ultra-positive, with the Fear & Greed Index running into “extreme greed,” scoring 78 on the scale yesterday and 76 today. Indicating that investors were back putting money into cryptocurrencies.

Crypto market moves into Extreme Greed | Source: Fear & Greed Index on Alternative.me
Bitcoin Market Taking The Hint

With the Fear & Greed Index in “extreme greed,” tremendous buy pressure has been on the market. Money has flooded back into the market, sending the prices of cryptocurrencies skyrocketing. Following this has been the total crypto market hitting $2 trillion again after suffering continuous lows in the preceding two months. Altcoins have seen a lot of growth with this, as has Bitcoin.

BTC price trading north of $48K | Source: BTCUSD on TradingView.com

Bitcoin price, while currently trading north of $48K, shows tremendous promise in hitting a new all-time high. Indicators point in the direction of this bull rally continuing. Momentum has held up all across the market. This means that even though the price might experience small dips, overall control of the price lies in the hands of the bulls, determined to drive the bullish vehicle for as long as possible.

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Both institutional and individual investors have shown patterns of accumulation with bitcoin. Exchange inflows have fallen far below exchange outflows, indicating that investors are moving their digital assets from cryptocurrency exchanges for safekeeping in private wallets.

Featured image from Finance Magnates, chart from TradingView.com